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Floyd Industries stock has a beta of 1

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Floyd Industries stock has a beta of 1.6. The company just paid a dividend of £0.7, and the dividends are expected to grow at 5 percent. The expected return on the market is 12 percent, and Treasury bills are yielding 5.5 percent. The most recent share price for Floyd is £63. Calculate the cost of equity using the SML method. a) None b) 15.9% C) 6.17% d) 7.28% 1:49 PM